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SCO suspends Linux sales

Commercial users of Linux warned that they could face legal liability

SCO has suspended its sales and distribution of Linux pending resolution of the intellectual property issues surrounding the operating system.

The owner of the Unix licences, which is suing IBM for $1bn over the alleged misuse of Unix code in Linux, has also issued a statement stating that legal liability for use of Linux may extend to commercial users.

"When SCO's own Unix software code is being illegally copied into Linux, we believe we have an obligation to educate commercial users of the potential liability that could rest with them for using such software to run their business," SCOsource general manager and SCO senior vice president Chris Sontag said in a statement.

Sontag said the suspension of sales and distribution of SCO Linux until the issues were resolved was because the company felt so strongly about the matter.

SCO said it would continue to support existing SCO Linux and Caldera OpenLinux customers, regarding them as harmless to any SCO intellectual property issues related to these products.

It will now focus more strongly on Unix and its recently announced web services strategy known as SCOx.

SCO has also released guidance on its second quarter financials, in which it says it expects net income to be $4m on revenue of $21m.

We will bring you more on this story later. Meanwhile click here to read vnunet.com's exclusive interview with Chris Sontag.